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Council still aims to recover Icelandic bank cash

FINANCE chiefs at Wiltshire Council are still trying to recover the remainer of taxpayers’ money caught up in the Icelandic banking crisis of 2008.

A report reveals that unlike some other local authorities, Wiltshire decided not to sell off its claim on the failed Icelandic bank Landsbanki on January 30.

It says that had Wiltshire sold its claim at the auction, it would have lost £300,000 and it prefers to wait for the bank’s winding-up board to complete its work in the hope of recovering nearly all of its remaining cash.

The claim relates to £3m that was deposited with Landsbanki by the former Wiltshire County Council and North Wiltshire District Council.

Another £9m was invested with Heritable, a UK subsidiary of Landsbanki. Of the total £12m, Wiltshire Council has so far recovered £10.2m.

It expects to receive 95 per cent of the Heritable cash and 100 per cent of the Landsbanki deposit.

However, the report, written by Keith Stephens, the council’s business analyst, says there are still risks because repayments from Landsbanki are likely to take several more years and will be subject to the ups and downs of the exchange rate and capital controls imposed by the Icelandic Government.

The report, to the council Cabinet, says offers are regularly received from “parties interested in buying our claim”.

Mr Stephens says: “The council will need to consider how best to proceed as, with the number of authorities that still hold claims significantly diminished, the relative costs of any legal proceedings will be higher.”

Comments (1)

It was bad enough that the financial sector deemed it fit to gamble with other people's money let alone local council wannabe banking losers. I saw these interest rates advertised years ago by Icelandic banks and they were way above all others which set alarm bells ringing straight away. They didn't see a penny of my cash, I wasn't stupid enough into being fooled into parting with my savings which, as it turns out was the right decision.
Stop gambling with money that isn't yours!

It was bad enough that the financial sector deemed it fit to gamble with other people's money let alone local council wannabe banking losers. I saw these interest rates advertised years ago by Icelandic banks and they were way above all others which set alarm bells ringing straight away. They didn't see a penny of my cash, I wasn't stupid enough into being fooled into parting with my savings which, as it turns out was the right decision.
Stop gambling with money that isn't yours!karlmarx